Budget FY27: IMF to dispatch mission to Pakistan next month

• Govt starts consultations amid geopolitical situation.
• FinMin Muhammad Aurangzeb begins consultations.
• FBR seeks major reduction in taxes of salaried class.

ISLAMABAD: The International Monetary Fund (IMF) plans to dispatch its mission to Pakistan next month to finalise the upcoming budget for 2026-27.

The Fund envisages the Federal Board of Revenue’s (FBR) tax collection target of Rs15.564 trillion for the next fiscal year.

Keeping in view the geopolitical situation, the government has decided to kick-start the consultation process to finalise the contours of the coming budget.

Minister for Finance Muhammad Aurangzeb has already held initial deliberations with the Pakistan Business Council (PBC) and Overseas International Chamber of Commerce and Industries (OICCI), while the minister of state for finance and adviser to the PM on industries held a meeting with APTMA to remove their concerns over increased logistics and freight charges owing to the recent regional conflicts.

It is the wish of the Pakistani budget makers to fix the FBR’s target in the range of Rs15.232 trillion, knowing that the tax machinery will not be able to materialise the tax collection target of Rs13,979 billion for the ongoing fiscal year.

The FBR wants a major reduction in the rates of super tax and the salaried class in the next budget.

The government is also contemplating various options to request the IMF in its upcoming mission in May 2026 for the withdrawal of some withholding taxes, especially in case of those WHT where refunds are piled up massively.

Originally published in The News